A. Reorganize the hierarchies around the flow of value
B. Organize the Enterprise around the flow of value while maintaining the hierarchies
C. Build a small entrepreneurial network focused on the Customer instead of the existing hierarchies
D. Leverage Solutions with economies of scale
The Correct Answer is
B. Organize the Enterprise around the flow of value while maintaining the hierarchies
Explanation
The Scaled Agile Framework (SAFe) recommends using a second operating system to deliver value by:
- Organize the Enterprise around the flow of value while maintaining the hierarchies
SAFe views an organization as having two operating systems. The first is the traditional hierarchy, which is necessary for efficiency, scalability, and for executing well-defined processes. The second operating system, advocated by SAFe, focuses on delivering value through Agile Release Trains (ARTs) and Solution Trains. This system is more about networks of teams that are organized around value streams, and it operates in parallel with the traditional hierarchy.
This approach does not propose eliminating or completely reorganizing the existing hierarchical structure. Instead, it suggests maintaining the hierarchy for its benefits in certain areas (like resource allocation, governance, and decision-making) while also cultivating a more flexible, networked approach focused on value delivery. This dual structure allows the organization to manage routine business operations efficiently while also being agile, innovative, and responsive to customer needs and market changes.
The key concepts behind organizing the enterprise around the flow of value include:
- Value Streams: Identifying and organizing around value streams, which are the sequences of steps that an organization uses to deliver a product or service to a customer. This focus ensures that efforts are directly contributing to customer value.
- Agile Release Trains (ARTs): These are teams of Agile teams, along with other stakeholders, who plan, commit, and execute together in a synchronized manner. ARTs are aligned to a specific value stream, ensuring that development efforts are focused on delivering customer value.
- Solution Trains: For larger, more complex solutions that require multiple ARTs, Solution Trains coordinate the efforts of all the ARTs and suppliers to ensure that there is alignment and that the solution effectively addresses customer needs.
By organizing around value in this way, while still leveraging the existing hierarchical structures for their strengths, SAFe allows organizations to be more adaptive and responsive without sacrificing the efficiency and stability provided by traditional organizational models.
Other Leading SAFe 6.0 Question – An Enterprise has just adopted the SAFe Implementation Roadmap and is in the process of training executives, managers, and leaders. What is their next step?